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Jim Cramer's 'Mad Money' Recap: Market Headwinds Getting Worse

That's why Cramer said he remains a fan of Coke, which trades at 19.6 times earnings, and Pepsico, trading at 18.9 times earnings, over Dr Pepper at just 16.2 times earnings. Coke is seeing organic growth, he noted, and is also seeing some improvements in pricing power.

But Cramer said his favorite among the three is Pepsico, which has a strong international growth story, along with a fabulous snack business and activist investor Nelson Peltz pushing the company to unlock value, possibly by splitting itself into two.

Cramer Still Loves GM

"Enough is enough," Cramer told viewers, General Motors (GM), an Action Alerts PLUS holding, is not toast. Yes, the 2.6 million-vehicle recall is bad news for the company, he admitted, but investors need to be buyers into the weakness, not sellers.

Why is Cramer so bullish? He said it's because the market doesn't take long to process bad news. With the recall first coming to light some three months ago, GM has already lost $5.5 billion in market cap.

Investors need only look at BP (BP) after the 2010 oil spill to see how the pattern works, Cramer told viewers. Back then, BP shares were cut in half, from $60 to $30, but have been gaining slowly ever since.

Cramer said even if the recall ends up costing $2.5 billion, GM is big enough to handle that loss and still prosper. In fact, given that the company went bankrupt in 2010, the new GM might not even be liable for all the costs.

Given the company's strong earnings, its 3.5% yield and the fact its taking market share, Cramer said the fact GM now trades for just seven times 2015 estimates is ridiculous.

Executive Decision: Neil Cole

For his "Executive Decision" segment, Cramer sat down with Neil Cole, chairman, president and CEO of Iconix (ICON), purveyors of such retail brands as Joe Boxer, Umbro, Candie's and London Fog. Iconix just delivered a nine-cents-a-share earnings beat on better-than-expected sales and raised guidance. The company has also retired 37% of its shares since 2011, leading to a 40% gain since Cramer last checked in back in June 2013.

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